Why isn’t childcare a business expense?

[Anonymous]

Anonymous wrote:Why not babysitting deductible too for SAHMs date night?

Why would a SAHP qualify for a business expense?

[Anonymous]

Anonymous wrote:Because ideally women should stay home barefoot and pregnant.

+1

Patriarchy.

[Anonymous]

Anonymous wrote:I think it's because having children is not a requirement for your job.

Sure. But since I do have them, I need my nanny in order to do my job.

I mean, having a receptionist isn’t technically a requirement for my job either. Someone else with different skills might be able to get away without one. Do you think it’s unreasonable that I have her on my business payroll? Or should that be a personal expense?

[Anonymous]

Anonymous wrote:What "business" are you operating that you would deduct such expenses?

OP here. I’m a dermatologist with a solo practice.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think it's because having children is not a requirement for your job.

This is the answer. Children are a personal choice unrelated to employment. Childcare is no different than other personal nondeductible expenses which make it easier for people to work, like a home closer to your place of employment, a car to commute in, clothes to wear to work (if not a required uniform), a watch make sure you arrive at work on time, etc. Those are all personal, not business expenses.

Children are the future of society, and the decision to have them or not has consequences for demographics, social structures, and the continuation of human life.

While individuals have the freedom to choose whether or not to have children, the decision is not a simple lifestyle choice in the same way as choosing a hobby or a travel destination. It's a deeply personal and impactful decision with profound implications for individuals and society as a whole.

[Anonymous]

You do know about the Child and Dependent Care Credit, right? Just as good as a deduction. Please educate yourself.

[Anonymous]

I know multiple small biz owners who somehow had their accountants finagle nanny expenses as deductible against their biz income. Not sure how they did it. One of the people I know was a marginally successful influencer who was pulling in $300K per year in money. Her husband was proud that their accountant authorized it as a deduction.

[Anonymous]

Anonymous wrote:(Satire) I know, let us have the government setup and manage subsidized child care, as in Sweden. That would work really well in a large diverse country like the USA.

No one said it should be subsidized. Just paid for with pre-tax dollars (if you hire legally).

Do you think your employer is subsidized to hire you because they don’t pay you out of their personal post-tax income?

[Anonymous]

Anonymous wrote:

Anonymous wrote:What "business" are you operating that you would deduct such expenses?

OP here. I’m a dermatologist with a solo practice.

So? How is child care a business expense?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What "business" are you operating that you would deduct such expenses?

OP here. I’m a dermatologist with a solo practice.

So? How is child care a business expense?

Because, for the next few years, I need my nanny in order to run my practice. This is normal and reasonable.
If I wasn’t working, I wouldn’t need her.

[Anonymous]

Anonymous wrote:I know multiple small biz owners who somehow had their accountants finagle nanny expenses as deductible against their biz income. Not sure how they did it. One of the people I know was a marginally successful influencer who was pulling in $300K per year in money. Her husband was proud that their accountant authorized it as a deduction.

They call them a personal assistant is how they do it. It’s rare to get audited and if you do, easy to have them say they answer phones, schedule appointments, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:(Satire) I know, let us have the government setup and manage subsidized child care, as in Sweden. That would work really well in a large diverse country like the USA.

No one said it should be subsidized. Just paid for with pre-tax dollars (if you hire legally).

Do you think your employer is subsidized to hire you because they don’t pay you out of their personal post-tax income?

Making it deductible IS a subsidy. They even have a name for it. A tax subsidy. Yes, mortgage interest, charitable donations, employer provided health insurance. All of that. Your housing, your affinities and your health are ALL subsidized.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What "business" are you operating that you would deduct such expenses?

OP here. I’m a dermatologist with a solo practice.

So? How is child care a business expense?

Because, for the next few years, I need my nanny in order to run my practice. This is normal and reasonable.
If I wasn’t working, I wouldn’t need her.

NP here

I am with you OP.

Having children may be optional at the individual level but it is required at the societal level. If people stopped having children completely it would be catastrophic. People in the US who treat having children as some kind of personal indulgence are idiots.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What "business" are you operating that you would deduct such expenses?

OP here. I’m a dermatologist with a solo practice.

So? How is child care a business expense?

Because, for the next few years, I need my nanny in order to run my practice. This is normal and reasonable.
If I wasn’t working, I wouldn’t need her.

So call her an executive assistant and be done with it. Even add a couple of executive assistant duties to her job so she can answer honestly in the even if a 1 in a million audit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What "business" are you operating that you would deduct such expenses?

OP here. I’m a dermatologist with a solo practice.

So? How is child care a business expense?

Because, for the next few years, I need my nanny in order to run my practice. This is normal and reasonable.
If I wasn’t working, I wouldn’t need her.

NP here

I am with you OP.

Having children may be optional at the individual level but it is required at the societal level. If people stopped having children completely it would be catastrophic. People in the US who treat having children as some kind of personal indulgence are idiots.

I think the point is that we already provide tax incentives for parents. They may not be generous, but the tax code already recognizes the societal benefit of children.

What OP wants is more. Not for everyone, but for herself as a sole proprietor of a highly lucrative business. She could pay her fair share of taxes on her large income, which would in turn help families across the country, but she wants to lower her tax burden specifically for people like herself.

That's not any way to run a functioning society.